THE Kedah government has recouped losses from illegal mining of rare earth elements in Sik through fining the Chinese national responsible, Menteri Besar Muhammad Sanusi Md Nor said today.

According to Sanusi, on October 11, the man paid a compound of RM500,000 for illegal mining and another RM130,000 for trespassing the Bukit Enggang forest reserve in Sik.

“This is following recommendations to the deputy public prosecutor by the Kedah Forestry Department for action to be taken,” he said during the question-and-answer session in the Kedah assembly in Alor Star today, following a question by Johari Abdul (Gurun-PH) on the latest developments.

Sanusi said the state government was advised that the case should be compounded rather than taken to court as the former would go into state government coffers.

“Otherwise, if it was taken to court, then the fine would go to the Federal government,” he said.

He said the seized rare earth elements were estimated to be worth RM391,000, according to market value on September 30.

The material had been seized and would be disposed of after obtaining the approval of the state authorities, he added.

Sanusi said the Chinese national and a lorry driver were arrested and remanded on September 26.

He said the inductively coupled plasma mass spectrometry (ICPMS) laboratory test conducted by the Kedah Department of Minerals and Geosciences found that the seized sludge cake contained rare earth elements.

“The Forestry Department has taken action by stopping illegal rare earth mining in compartment 12 of the Bukit Enggang Forest Reserve and by destroying mining equipment,” he said.

Meanwhile, he also denied Kedah Menteri Besar Corporation (MBI) was involved in any rare earth exploration or mining in the reserve.

“MBI and Prospek Suria (company) are in a 15:85 joint venture with the company given one (mining) lot. Yes, there is permission to explore but the joint venture has yet to take effect and there is no activity as we are still waiting for the SOP.

“The one who stole is a Chinese national and the one who paid the compound is not Sobri Osman, who heads MBI,” he said when replying to a supplementary question by Datuk Dr Ismail Salleh (Pengkalan Kundor-PH). – Bernama, October 31, 2022.